The inventory model under supplier's partial trade credit policy in a supply chain system

Kun-Jen Chung; Pin-Shou Ting

doi:10.3934/jimo.2015.11.1175

Article Contents

2015, Volume 11, Issue 4: 1175-1183. Doi: 10.3934/jimo.2015.11.1175

This issue Previous Article Bounds on price of anarchy on linear cost functions Next Article A closed-form solution for outperformance options with stochastic correlation and stochastic volatility

The inventory model under supplier's partial trade credit policy in a supply chain system

Kun-Jen Chung^1, and
Pin-Shou Ting^2,

1.
College of Business, Chung Yuan Christian University, Chung Li
2.
Department of International Business Management, Shih Chien University, Taipei

Received: May 2014

Revised: August 2014

Published online: March 2015

Abstract / Introduction Related Papers Cited by

Abstract

A lot of researchers explore the inventory EOQ model under the assumption that the supplier would offer the retailer full trade credit but not partial trade credit. In practice, the supplier's partial trade credit policy is frequently adopted in business transactions. This paper incorporates a real payment mode in which the retailers could still gradually settle the partial payment in the inventory EOQ model under the supplier's partial trade credit. Some theorems for the optimal cycle time are also proposed.

Keywords:

Mathematics Subject Classification: Primary: 90B05; Secondary: 65H05.

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